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Posted on Aug 31, 2024

Question 10 13 pts Bingham, Inc., is considering the purchase of a machine that would cost $700,000 and would last for 12 years, at the

Question 10 13 pts Bingham, Inc., is considering the purchase of a machine that would cost $700,000 and would last for 12 years, at the end of which the machine would have a salvage value of $15,000. The machine would reduce labor and other costs by $100,000 per year, while adding $58,300 in depreciation expense. Additional working capital of $25,000 would be needed immediately, all of which would be recovered at the end of 12 years. The company requires a minimum pretax return of 11% on all investment projects. Required: Determine the net present value of the project. Show your work! TABLE 3 Present Value of 1 IND Periods 1 2 3 4 5 4% 36154 93456 KO RSED 2195 79001 75992 TV 12:59 67556 64958 13460 007 57748 5% 95218 90700 184 3270 710 74632 7105 67654 64461 61.391 94340 200 22 79200 74726 2017 66506 62741 5910 35839 3279 6 92593 R$734 793 73503 SK 2017 58140 S2007 Songs 46319 428 39711 36770 SOO 3116 73119 68873 sous 5164 48166 43393 12% 89286 79719 71178 43582 56743 S 45235 | 10 8 9 10 CAL 99 91745 84168 .7721N .70843 61993 9127 54703 SOL 400 40241 3x75 18554 1618 29925 27454 25187 23107 21199 10% SOK X2645 75132 ARRON 6892 56447 51.316 1651 43410 38554 15039 3183 28966 3333 23939 21761 .1978 17 1985 ZIOS LOSOS 15% S6957 75614 65752 57175 49718 43223 37594 3200 25426 24719 21494 1891 16253 14133 122 1062 9293 ONOSI ona 12 13 14 15 16 17 18 35536 TOINT 15215 31728 2588 25751 2319 2090 1880 3 15282 11 46284 44210 41727 39365 37146 15034 32197 2x70 25668 22917 20102 18270 16312 14564 13004 LALI 5.091 5107 49363 6 INST 31524 29189 27027 25025 4. 41552 LASE O COD COLE 13 14 15 711 306 33 w 41720 FE RIA SOME SPICE 20751 23 57747 365 16253 14033 123 E WC 16 3517 3. 2175 17 100 2017 3046 100 1601 16 11004 116 COL TIM 2207 DISIP HONE 17 15 29 M 4963 47464 23171 31199 1940 1615 LOCO 3301 BINO 137 13 OLE 16 ME II SOHO 1.71252 244371 21045 WE TABLE4 Pust Value of an Army of 1 ER) Per 10% 1 14 992 9340 92393 9173 20 2 1. 1991 1.78306 1.79911 1.73554 3 2.77 2.72115 2.67101 2.37710 253130 2.46RS 4 TAO 354995 41 3031213 3.2.1972 3.10 3 AIRO 49 4112 3.99271 JAS 3.79 S2214 5.00 4.91732 4.623 448592 4.35526 7 6.000 5.78637 5582 S237 502295 4682 8 67324 6.46321 6. 5.74664 5.53462 5.33493 9 7430 7.1073 6.80169 6.3460 5.99525 5.754902 10 RH1090 7.72173 7.36 6.100 6.41766 6.14457 NON _10641 7. 7.1.18 NOS 19 6,4950 12 9.157 8.2335 R4 75 7.16073 .. 13 9.SAS 9.99357 SAS 7.90.878 7.480.90 7.10146 14 TO 12 9964 9.2949 34434 7.78613 7. 15 11.11R19 10376 9.71225 855948 ROKO 7.60608 16 11468280 1080777 10 10990 5137 31256 7.82371 17 12.16567 11.27407 10.47726 9.12161 8:54 KISS 18 12.699.30 11.69999 102760 9.37189 R7556 20141 19 13.13394 12.03.02 11.15812 9.60 8.9012 RM6.092 20 13.00 12.46221 11.46992 9.1813 9.IS 31356 129 1936 1. 2013 303735 3.60073 411141 4.5A16 4.96764 5.32105 S.222 5.93770 421054 4.71220 3.14612 5.50 S.923 6.2002 6.492.16 6. 6.9 7.17 7.37916 7.5479 7.70162 73929 7333 15% 97 1.40571 22323 2.54 3.35216 3.78448 4.16042 4.48730 4.77158 501877 5.23371 5.4302 5.58315 5.72445 584737 595424 6,04716 6.12797 6.1963 6.25933 6.42056 GUAN 610M 69700 7.1193 7.2497 7.6578 7444 Edit View Insert Format Tools Table 12pt Paragraph I >